Forget the Magnificent Seven Stocks: 1 Magnificent Cryptocurrency Could Soar 635% in 5 Years, According to a Wall Street Analyst

The so-called Magnificent Seven stocks have proven to be outstanding investments over the past five years, outperforming the broader market significantly. While the S&P 500 returned 97% during this period, each member of the Magnificent Seven saw substantial growth, with four stocks more than tripling in value:

• Alphabet: 137%
• Amazon: 104%
• Apple: 285%
• Meta Platforms: 192%
• Microsoft: 278%
• Nvidia: 1,980%
• Tesla: 791%

While these stocks may continue to outperform the market, investors are advised to explore opportunities beyond these megacap companies for diversification. One such opportunity lies in Bitcoin (CRYPTO: BTC), which has exhibited remarkable performance, outperforming virtually every other asset class over the past five years.

Tom Lee, a reputable Wall Street analyst with a successful track record, predicts that Bitcoin could soar 635% in the next five years. Lee, currently managing partner and head of research at Fundstrat Global Advisors, believes Bitcoin could reach $150,000 by the end of 2024 and $500,000 within five years. His prediction is based on factors such as improving demand with the introduction of spot Bitcoin exchange-traded funds (ETFs), supply reduction through halving events, and supportive monetary policy.

Lee’s forecast aligns with a prediction made by MicroStrategy former Chief Executive Officer Michael Saylor, who suggested that Bitcoin could reach $500,000 within a decade. The recent approval of spot Bitcoin ETFs by the Securities and Exchange Commission could accelerate Bitcoin’s growth trajectory by attracting more retail and institutional investors to the market. Additionally, the upcoming halving of Bitcoin mining rewards is expected to reduce selling pressure, further supporting price appreciation.

While Bitcoin presents significant upside potential, investors should be aware of its inherent volatility. Past performance is not indicative of future results, and Bitcoin’s price could experience substantial fluctuations. Investors comfortable with volatility may consider diversifying their portfolios with a small allocation to Bitcoin.

Should you invest $1,000 in Bitcoin right now?

The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now, and Bitcoin wasn’t one of them. Stock Advisor provides investors with a blueprint for success, including portfolio guidance, regular updates from analysts, and two new stock picks each month. The service has significantly outperformed the S&P 500 since 2002.